Discretionary Bonus During the Christmas Period in Poland – How to Grant and Settle It?

The Christmas season is a time when many employers choose to give employees an extra gesture of appreciation. It is a moment for reflection, acknowledgement, and reinforcing team motivation. One of the most common solutions used in Poland is the discretionary Christmas bonus, a flexible form of reward that fits naturally with the end-of-year period.

Table of Contents:

• What Is a Discretionary Bonus?
• Discretionary Bonus vs. Contractual/Regulated Bonus – Key Differences
• Including a Discretionary Bonus in the Basis for Sickness Benefits
• How to Settle a Discretionary Bonus During the Christmas Period in Poland?
• What Forms Can a Christmas Bonus Take?
• Is a Christmas Bonus Mandatory?

What Is a Discretionary Bonus?

A discretionary bonus is a voluntary component of remuneration granted at the employer’s initiative. It may apply to a single employee or to an entire team — for example, after completing a project or as a Christmas gesture of appreciation.

The Polish Labour Code does not define the rules for awarding discretionary bonuses. Article 105 only provides for the possibility of granting awards and distinctions for initiative, work quality, or exceptional engagement. A copy of the notification about the award must be placed in the employee’s personnel file.

In practice, this means that the:

• amount,
• payment date,
• and criteria for granting the bonus

are determined solely at the employer’s discretion.

A discretionary bonus is non-claimable, meaning that employees cannot demand its payment. This is confirmed by case law, including the judgment of the Polish Supreme Court of 30 March 1977 (I PRN 26/77).

An exception may occur when an employee can prove that, despite performing with the same efficiency as others with identical duties, they were excluded from receiving the bonus. In such cases, the situation may indicate a breach of the principle of equal treatment in employment.

Discretionary Bonus vs. Contractual Bonus – Key Differences

The fundamental difference between a contractual bonus (premia regulaminowa) and a discretionary bonus (premia uznaniowa) is that the latter is voluntary and depends entirely on the employer’s will.

A contractual bonus is an additional component of remuneration whose rules arise directly from internal company regulations — most often from the remuneration policy or pay regulations. This means that once an employee meets the defined conditions, the employer is obliged to pay the bonus. Because the criteria are clearly specified, assessing whether an employee is entitled to the bonus is straightforward.

Unlike a discretionary bonus, a contractual bonus:

• forms part of the employee’s remuneration,
• is based on predefined rules,
• constitutes an employee’s claimable right once conditions are met,
• must be paid by the employer.

It may be fixed or cyclical, but it may also be awarded occasionally — as long as the rules are written and transparent.

Adding a discretionary bonus to internal regulations does not change its nature; it remains a voluntary benefit. Its omission can be challenged only when it violates the principle of equal treatment.

It is also important to remember that a discretionary bonus cannot be the only component of remuneration. The correct structure should consist of base salary + supplements/bonuses.

Including a Discretionary Bonus in the Sickness Benefit Base (Poland)

A discretionary bonus is treated as part of employment income, which means it may be included in the base for calculating sickness-related benefits (such as sickness pay, maternity allowance, or other ZUS benefits) if:

• it is paid regularly or cyclically (e.g., monthly or quarterly), and
• it is a component of remuneration received by the employee during the period used to calculate the benefit base (typically the 12 months preceding the sickness event).

Exception

A one-off bonus, such as a Christmas discretionary bonus paid only once a year, is not included in the sickness benefit base because it is not a permanent or recurring element of remuneration.

Practical tip

In payroll and HR documentation, it is advisable to clearly indicate whether the bonus is one-off or cyclical to avoid mistakes when calculating ZUS benefits.

How to Account for a Discretionary Bonus During the Christmas Period in Poland?

A discretionary bonus paid in December:

• constitutes taxable employment income,
• is subject to PIT,
• is subject to ZUS contributions,
• must be included on the payroll for that month.

Key points to keep in mind:

• properly document the decision to award the bonus,
• include it correctly in the payroll system,
• ensure that the method of awarding meets equal-treatment requirements.

What Forms Can a Christmas Bonus Take?

Christmas bonuses can take various forms. The most common are additional cash payments, though vouchers and gift cards are also widely used. Many employers offer additional days off or shortened working hours during the holiday period. Gift baskets and symbolic presents also remain popular, as they help build relationships and add a festive atmosphere.

The choice of form depends on internal company policy, financial capacity, and applicable regulations.

Is a Christmas Bonus Mandatory in Poland?

No. Polish labour law does not impose an obligation on employers to pay a Christmas bonus. It is a voluntary benefit — unless the rules for awarding it are specified in the remuneration policy, collective agreement, or employment contract.
If such rules exist, the employer must grant the bonus to employees who meet the defined criteria.

Summary

A discretionary bonus is an effective tool for acknowledging employees during the festive period. However, it remains voluntary and must be awarded in a way that respects the principle of equal treatment.

If you would like to streamline your bonus policy or confirm the correct settlement of Christmas bonuses, contact our expert.
And if you are also interested in the correct handling of company holiday events, take a look at our article:
“Company Christmas Eve Dinner – How to Manage Payroll and Tax Obligations in Poland?”